[{"data":1,"prerenderedAt":502},["ShallowReactive",2],{"document-stock-option-plan-D13284":3},{"document":4,"label":21,"preview":11,"thumb":22,"thumb600":23,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":24,"breadcrumb":28,"related":36,"customDescModule":182,"customdescription":6,"mdFm":183,"mdProseHtml":501},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"STOCK OPTION PLAN This Stock Option Plan (the \"Plan\") is given by [COMPANY NAME] (the \"Company\"), having its registered office at [SPECIFY ADDRESS] to its Employees. This Plan was approved and adopted by the Board of Directors and by the stockholders on [DATE]. STATEMENT OF PURPOSE [COMPANY NAME] has formulated this Plan, in furtherance of the corporate policy of the Company, for creating an environment conducive to higher growth opportunities for its Employees and the Employees of its Affiliates, and with a view to align the interests of such Employees and those of the shareholders by creating a common sense of purpose towards creating sustainable shareholder value. DEFINITIONS Administrator shall mean the Compensation Committee of the Board (or a subcommittee thereof) acting in its capacity as Administrator of the Plan. Applicable Laws shall mean the legal requirements related to the Plan and the option under applicable provisions of the securities laws of [STATE/PROVINCE]. Board shall mean the Company's Board of Directors. Company shall mean [NAME OF COMPANY]. Option Shares shall mean the number of shares of Common Stock subject to the option as specified in the attached Exhibit A. Optionee shall mean the person eligible to avail the Stock Option Plan. Permanent Disability shall mean the inability of the Optionee to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which is expected to result in death or to be of continuous duration of [NUMBER OF MONTHS] months or more. Plan shall mean this Stock Option Plan. GRANT OF OPTION The Company hereby grants to the eligible person (the \"Optionee\") an option to purchase shares of Common Stock under the Plan. The date on which this option is granted (the \"Grant Date\"), the number of shares of Common Stock purchasable under this option (the \"Option Shares\"), the exercise price payable per share (the \"Exercise Price\"), the applicable vesting schedule by which this option shall vest and become exercisable incrementally for the Option Shares (the \"Vesting Schedule\") and the date to be used to measure the maximum term of this option (the \"Expiration Date\") are indicated on the attached Exhibit A to this Plan. The remaining terms and conditions governing this option shall be as set forth in this Plan. ELIGIBILITY FOR THE GRANT OF OPTIONS The criteria to be fulfilled by an Employee for being considered an Eligible Employee may be prescribed by the Committee from time to time. Only Employees fulfilling such criteria and who are not Disqualified Employees shall be considered Eligible Employees for the purposes of this Plan. An option can be granted only to an Eligible Employee who has been selected by the Committee. While selecting Eligible Employees for the award of grants and for deciding the number of options to be granted to such Eligible Employees, the Committee may be guided by the following considerations (i.e. eligibility criteria): Number of years of service Job profile and grade Performance rating or key result area appraisal Any other factors the Board of Directors or the Committee may deem appropriate. OPTION TERM The term of this option shall commence on the Grant Date and continue to be in effect until the close of business on the last business day prior to the Expiration Date specified in the attached Exhibit A, unless sooner terminated in accordance with this Plan. LIMITED TRANSFERABILITY This option shall be neither transferable nor assignable by the Optionee other than by will or the laws of inheritance following the Optionee's death and may be exercised, during the Optionee's lifetime, only by the Optionee. DATE OF EXERCISE This option shall vest and become exercisable for the Option Shares in a series of installments in accordance with the Vesting Schedule set forth in the attached Exhibit A. As the option vests and becomes exercisable for such installments, those installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the last business day prior to the Expiration Date or any sooner termination of the option term. CESSATION OF SERVICE The option mentioned above shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable: Except as otherwise expressly provided in subparagraphs 8.1.2 through 8.1.7 of this Paragraph 8, should the Optionee cease to remain in Continuous Service for any reason while this option is outstanding, then the Optionee shall have until the close of business on the last business day prior to the expiration of the [NUMBER OF MONTHS]-month period measured from the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of the Optionee's cessation of Continuous Service, but in no event shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date. In the event the Optionee ceases Continuous Service by reason of his or her death while this option is outstanding, then this option may be exercised, for any or all of the Option Shares for which this option is vested and exercisable at the time of the Optionee's cessation of Continuous Service, by (i) the personal representative of the Optionee's estate or (ii) the person or persons to whom the option is transferred pursuant to the Optionee's will or the laws of inheritance following the Optionee's death. However, if the Optionee dies while holding this option and has an effective beneficiary designation in effect for this option at the time of his or her death, then the designated beneficiary or beneficiaries shall have the exclusive right to exercise this option following the Optionee's death. Any such right to exercise this option shall lapse, and this option shall cease to be outstanding, upon the close of business on the last business day prior to the earlier of (a) the expiration of the twelve (12)-month period measured from the date of the Optionee's death or (b) the Expiration Date. Upon the expiration of such limited exercise period, this option shall terminate and cease to be outstanding for any exercisable Option Shares for which the option has not otherwise been exercised. Should the Optionee cease Continuous Service by reason of Permanent Disability while this option is outstanding, then the Optionee shall have until the close of business on the last business day prior to the expiration of the twelve (12)-month period measured from the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of such cessation of Continuous Service. In no event, however, shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date. Except as otherwise precluded by Applicable Laws, should (i) the Optionee cease Continuous Service after completion of at least three (3) years of Continuous Service and (ii) the sum of the Optionee's attained age and completed years of Continuous Service at the time of such cessation of service equals or exceeds seventy (70) years, then the Optionee shall have until the close of business on the last business day prior to the expiration of the thirty-six (36)-month period measured from the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of such cessation of Continuous Service. In no event, however, shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date.",null,"Stock Option Plan","9",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/stock-option-plan-D13284.png","https://templates.business-in-a-box.com/imgs/250px/13284.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13284.xml",{"title":15,"description":6},"stock option plan",[17,20],{"label":18,"url":19},"Legal Agreements","/templates/business-legal-agreements/",{"label":18,"url":19},"Stock Option Plan Template","https://templates.business-in-a-box.com/imgs/400px/13284.png","https://templates.business-in-a-box.com/imgs/600px/13284.png",[25,17,20],{"label":26,"url":27},"Templates","/templates/",[29,30,33],{"label":26,"url":27},{"label":31,"url":32},"Human Resources","/templates/human-resources/",{"label":34,"url":35},"Compensation & Payroll","/templates/compensation-and-payroll/",[37,41,45,49,53,57,61,65,69,73,77,81,85,102,119,134,149,164],{"label":38,"url":39,"thumb":40,"extension":10},"Employee Stock Option Agreement","/template/employee-stock-option-agreement-D12613","https://templates.business-in-a-box.com/imgs/250px/12613.png",{"label":42,"url":43,"thumb":44,"extension":10},"Notice of Grant of Stock Option","/template/notice-of-grant-of-stock-option-D896","https://templates.business-in-a-box.com/imgs/250px/896.png",{"label":46,"url":47,"thumb":48,"extension":10},"Phantom Stock Plan","/template/phantom-stock-plan-D13748","https://templates.business-in-a-box.com/imgs/250px/13748.png",{"label":50,"url":51,"thumb":52,"extension":10},"Stock Agreement","/template/stock-agreement-D347","https://templates.business-in-a-box.com/imgs/250px/347.png",{"label":54,"url":55,"thumb":56,"extension":10},"Stock Certificate and Common Stock","/template/stock-certificate-and-common-stock-D97","https://templates.business-in-a-box.com/imgs/250px/97.png",{"label":58,"url":59,"thumb":60,"extension":10},"Employee Stocks Option Grant Notice","/template/employee-stocks-option-grant-notice-D12614","https://templates.business-in-a-box.com/imgs/250px/12614.png",{"label":62,"url":63,"thumb":64,"extension":10},"Stock Purchase Agreement","/template/stock-purchase-agreement-D349","https://templates.business-in-a-box.com/imgs/250px/349.png",{"label":66,"url":67,"thumb":68,"extension":10},"Stock Subscription Agreement","/template/stock-subscription-agreement-D350","https://templates.business-in-a-box.com/imgs/250px/350.png",{"label":70,"url":71,"thumb":72,"extension":10},"Option to Buy Agreement","/template/option-to-buy-agreement-D336","https://templates.business-in-a-box.com/imgs/250px/336.png",{"label":74,"url":75,"thumb":76,"extension":10},"Put Option Agreement","/template/put-option-agreement-D339","https://templates.business-in-a-box.com/imgs/250px/339.png",{"label":78,"url":79,"thumb":80,"extension":10},"Assignment and Transfer of Stock Certificate","/template/assignment-and-transfer-of-stock-certificate-D323","https://templates.business-in-a-box.com/imgs/250px/323.png",{"label":82,"url":83,"thumb":84,"extension":10},"Pledge of Shares of Stock","/template/pledge-of-shares-of-stock-D407","https://templates.business-in-a-box.com/imgs/250px/407.png",{"description":86,"descriptionCustom":6,"label":87,"pages":88,"size":89,"extension":10,"preview":90,"thumb":91,"svgFrame":92,"seoMetadata":93,"parents":94,"keywords":100,"url":101},"Employee Handbook Understanding employment at [YOUR COMPANY NAME] Revised on [DATE] Prepared By: [YOUR NAME] [YOUR JOB TITLE] Phone 555.555.5555 Email info@yourbusiness.com www.yourbusiness.com Table of Content Table of Content 2 Welcome to [YOUR COMPANY NAME]! 5 1. Organization Description 6 1.1 Introductory Statement 6 1.2 Customer Relations 6 1.3 Products and Services Provided 7 1.4 Facilities and Location(s) 7 1.5 The History of [YOUR COMPANY NAME] 7 1.6 Management Philosophy 7 1.7 Goals 8 2. The Employment 9 2.1 Nature of Employment 9 2.2 Employee Relations 9 2.3 Equal Employment Opportunity 10 2.4 Diversity 10 2.5 Business Ethics and Conduct 12 2.6 Personal Relationships in the Workplace 13 2.7 Conflicts of Interest 13 2.8 Outside Employment 14 2.9 Non-Disclosure 15 2.10 Disability Accommodation 16 2.11 Job Posting and Employee Referrals 17 2.12 Whistleblower Policy 18 2.13 Accident and First Aid 20 3. Employment Status and Records 21 3.1 Employment Categories 21 3.2 Access to Personnel Files 22 3.3 Personnel Data Changes 23 3.4 Probation Period 23 3.5 Employment Applications 24 3.6 Performance Evaluation 24 3.7 Job Descriptions 25 3.8 Salary Administration 25 3.9 Professional Development 26 4. Employee Benefit Programs 27 4.1 Employee Benefits 27 4.2 Vacation Benefits 27 4.3 Military Service Leave 29 4.4 Religious Observance 29 4.5 Holidays 29 4.6 Workers Insurance 30 4.7 Sick Leave Benefits 31 4.8 Bereavement Leave 32 4.9 Relocation Benefits 33 4.10 Educational Assistance 33 4.11 Health Insurance 34 4.12 Life Insurance 35 4.13 Long Term Disability 35 4.14 Marriage, Maternity and Parental Leave 36 5. Timekeeping / Payroll 40 5.1 Timekeeping 40 5.2 Paydays 40 5.3 Employment Termination 41 5.4 Administrative Pay Corrections 42 6. Work Conditions and Hours 43 6.1 Work Schedules 43 6.2 Absences 43 6.3 Jury Duty 45 6.4 Use of Phone and Mail Systems 45 6.5 Smoking 46 6.6 Meal Periods 46 6.7 Overtime 46 6.8 Use of Equipment 47 6.9 Telecommuting 47 6.10 Emergency Closing 48 6.11 Business Travel Expenses 49 6.12 Visitors in the Workplace 51 6.13 Computer and Email Usage 51 6.14 Internet Usage 52 6.15 Workplace Monitoring 54 6.16 Workplace Violence Prevention 55 7. Employee Conduct & Disciplinary Action 57 7.1 Employee Conduct and Work Rules 57 7.2 Sexual and Other Unlawful Harassment 58 7.3 Attendance and Punctuality 60 7.4 Personal Appearance 60 7.5 Return of Property 61 7.6 Resignation and Retirement 61 7.7 Security Inspections 62 7.8 Progressive Discipline 62 7.9 Problem Resolution 64 7.10 Workplace Etiquette 65 7.11 Suggestion Program 67 Acknowledgement of Receipt 68 Welcome to [YOUR COMPANY NAME]! On behalf of your colleagues, we welcome you to [YOUR COMPANY NAME] and wish you every success here. At [YOUR COMPANY NAME], we believe that each employee contributes directly to the growth and success of the company, and we hope you will take pride in being a member of our team. This handbook was developed to describe some of the expectations of our employees and to outline the policies, programs, and benefits available to eligible employees. Employees should become familiar with the contents of the employee handbook as soon as possible, for it will answer many questions about employment with [YOUR COMPANY NAME]. We believe that professional relationships are easier when all employees are aware of the culture and values of the organization. This guide will help you to better understand our vision for the future of our business and the challenges that are ahead. We hope that your experience here will be challenging, enjoyable, and rewarding. Again, welcome! [PRESIDENT NAME] President & CEO 1. Organization Description 1.1 Introductory Statement This handbook is designed to acquaint you with [YOUR COMPANY NAME] and provide you with information about working conditions, employee benefits, and some of the policies affecting your employment. You should read, understand, and comply with all provisions of the handbook. It describes many of your responsibilities as an employee and outlines the programs developed by [YOUR COMPANY NAME] to benefit employees. One of our objectives is to provide a work environment that is conducive to both personal and professional growth. No employee handbook can anticipate every circumstance or question about policy. As [YOUR COMPANY NAME] continues to grow, the need may arise and [YOUR COMPANY NAME] reserves the right to revise, supplement, or rescind any policies or portion of the handbook from time to time as it deems appropriate, in its sole and absolute discretion. Employees will be notified of such changes to the handbook as they occur. 1.2 Customer Relations Customers are among our organization's most valuable assets. Every employee represents [YOUR COMPANY NAME] to our customers and the public. The way we do our jobs presents an image of our entire organization. Customers judge all of us by how they are treated with each employee contact. Therefore, one of our first business priorities is to assist any customer or potential customer. Nothing is more important than being courteous, friendly, helpful, and prompt in the attention you give to customers. [YOUR COMPANY NAME] will provide customer relations and services training to all employees with extensive customer contact. Customers who wish to lodge specific comments or complaints should be directed to the [TITLE AND NAME OF THE PERSON RESPONSIBLE] for appropriate action. Our personal contact with the public, our manners on the telephone, and the communications we send to customers are a reflection not only of ourselves, but also of the professionalism of [YOUR COMPANY NAME]. Positive customer relations not only enhance the public's perception or image of [YOUR COMPANY NAME], but also pay off in greater customer loyalty and increased sales and profit. 1.3 Products and Services Provided You will find more information about our products and services by reading the [YOUR COMPANY NAME] Corporate Brochures. 1.4 Facilities and Location(s) Head Office: [ADDRESS] [CITY], [STATE] [ZIP/POSTAL CODE] [COUNTRY] 1.5 The History of [YOUR COMPANY NAME] [DESCRIBE THE HISTORY OF YOUR COMPANY HERE] 1.6 Management Philosophy [YOUR COMPANY NAME] management philosophy is based on responsibility and mutual respect. Our wishes are to maintain a work environment that fosters on personal and professional growth for all employees. Maintaining such an environment is the responsibility of every staff person. Because of their role, managers and supervisors have the additional responsibility to lead in a manner which fosters an environment of respect for each person. People who come to [YOUR COMPANY NAME] want to work here because we have created an environment that encourages creativity and achievement. [YOUR COMPANY NAME] aims to become a leader in [DESCRIBE YOUR COMPANY'S FIELD OF EXPERTISE]. The mainstay of our strategy will be to offer a level of client focus that is superior to that offered by our competitors. To help achieve this objective, [YOUR COMPANY NAME] seeks to attract highly motivated individuals that want to work as a team and share in the commitment, responsibility, risk taking, and discipline required to achieve our vision. Part of attracting these special individuals will be to build a culture that promotes both uniqueness and a bias for action. While we will be realistic in setting goals and expectations, [YOUR COMPANY NAME] will also be aggressive in reaching its objectives. This success will in turn enable [YOUR COMPANY NAME] to give its employees above average compensation and innovative benefits or rewards, key elements in helping us maintain our leadership position in the worldwide marketplace. 1.7 Goals [DESCRIBE YOUR COMPANY'S GOALS HERE] 2. The Employment 2","Employee Handbook","34",280,"https://templates.business-in-a-box.com/imgs/1000px/employee-handbook-D712.png","https://templates.business-in-a-box.com/imgs/250px/712.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#712.xml",{"title":6,"description":6},[95,97],{"label":31,"url":96},"human-resources",{"label":98,"url":99},"Company Policies","company-policies","employee handbook","/template/employee-handbook-D712",{"description":103,"descriptionCustom":6,"label":104,"pages":105,"size":9,"extension":10,"preview":106,"thumb":107,"svgFrame":108,"seoMetadata":109,"parents":111,"keywords":110,"url":118},"EMPLOYMENT AGREEMENT - AT WILL EMPLOYEE This Employment Agreement for \"At Will\" Employee (the \"Agreement\") is made and effective this [DATE], BETWEEN: [EMPLOYEE NAME] (the \"Employee\"), an individual with his main address at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Corporation\"), an entity organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] RECITALS In consideration of the covenants and agreements herein contained and the moneys to be paid hereunder, the Corporation hereby employs the Employee and the Employee hereby agrees to perform services as an employee of the Corporation, on an \"at will\" basis, upon the following terms and conditions: APPOINTMENT The Employee is hereby employed by the Corporation to render such services and to perform such tasks as may be assigned by the Corporation. The Corporation may, in its sole discretion, increase or reduce the duties, or modify the title and job description, of the Employee from time to time, and any such increase, reduction or modification shall not be deemed a termination of this Agreement. ACCEPTANCE OF EMPLOYMENT Employee accepts employment with the Corporation upon the terms set forth above and agrees to devote all Employee's time, energy and ability to the interests of the Corporation, and to perform Employee's duties in an efficient, trustworthy and business-like manner. DEVOTION OF TIME TO EMPLOYMENT The Employee shall devote the Employee's best efforts and substantially all of the Employee's working time to performing the duties on behalf of the Corporation. The Employee shall provide services during the hours that are scheduled by the Corporation management. The Employee shall be prompt in reporting to work at the assigned time. NO CONFLICT OF INTEREST Employee shall not engage in any other business while employed by the Corporation. Employee shall not engage in any activity that conflicts with the Employees duties to the Corporation. Employee shall not provide any service or lend any aid or assistance to any party that competes with the services offered by the Corporation. Employee shall not provide any services to clients or prospective clients of the Corporation outside of the provision of services for the Corporation, whether such services are provided with or without compensation or remuneration. CORPORATION PROPERTY Employee acknowledges and agrees that while employed by the Corporation the Employee may be provided with use of computer equipment and other property of the Corporation. The use and possession of the such items shall be subject to any policies, requirements or restrictions established by the Corporation. Such items may only be used in performance of the Employee's duties for the corporation. On request of the Corporation, the Employee shall immediately deliver any such items to the Corporation. Upon termination of employment, Employee shall have the affirmative duty to return any such item to the Corporation whether a request is made or not. The obligation to return Corporation property shall extend and include any and all work product, client property, proprietary rights, intangible property, and all other property of the corporation regardless of the form or medium. COMPENSATION The Corporation shall pay the Employee such hourly compensation as determined by the Corporation. Payment shall be at the same time as the Corporations usual payroll to other employees. BONUS & BENEFITS Payment of any bonuses shall be at the complete discretion of the Corporation. No guarantee or representation that any bonuses will be paid has been made to the Employee. Standard benefits that are provided to other non-management employees shall be offered to the Employee, subject to the Corporation's policies and the terms and conditions of such benefits. WITHHOLDING All sums payable to Employee under this Agreement will be reduced by all federal, state, local, and other withholdings and similar taxes and payments required by applicable law. QUALIFICATIONS OF EMPLOYEE The employee shall satisfy all of the qualification that are established by the Corporation. TERM OF AGREEMENT There shall be no guaranteed term of employment. Employer acknowledges and agrees that Employee shall be an \"At Will\" Employee and that Employee's employment may be terminated at any time by the Corporation, with or without cause. FEES FROM EMPLOYEE'S WORK The Corporation shall have exclusive authority to determine the fees, or a procedure for establishing the fees, to be charged to clients by the Corporation for services that are provided by the Employee. All sums paid to the Employee or the Corporation in the way of fees, in cash or in kind, or otherwise for services of the Employee, shall, except as otherwise specifically agreed by the Corporation, be and remain the property of the Corporation and shall be included in the Corporation's name in such checking account or accounts as the Corporation may from time to time designate. CLIENTS AND CLIENT RECORDS The Corporation shall have the authority to determine who will be accepted as clients of the Corporation, and the Employee recognizes that such clients accepted are clients of the Corporation and not the Employee. All client records and files of any type concerning clients of the Corporation shall belong to and remain the property of the Corporation, notwithstanding the subsequent termination of the employment. POLICIES AND PROCEDURES The Corporation shall have the authority to establish from time to time the policies and procedures to be followed by the Employee in performing services for the Corporation. This may include, but is not necessarily limited to, employment policies, computer use policies, Internet access policies, email policies, and all other policies, procedures, directives, and mandates established by the Corporation, whether or not in written form or formally adopted. Employee shall abide by the provisions of any contract entered into by the Corporation under which the Employee provides services. Employee shall comply with the terms and conditions of any and all contracts entered by the Corporation. TERMINATION Employee acknowledges and agrees that Employee is an \"at will\" employee of the Corporation. As such, no term of employment is created hereby and employee may be terminated at any time in the sole discretion of the Corporation, whether there exists any cause for termination or not. CREATIONS AND INVENTIONS Employee acknowledges and agrees that any and all work product of the Employee that is conceived or created during the Employee's employment with the Corporation is the exclusive property of the Corporation. This shall include any and all copyrights, trade secrets, confidential information, patents, trademarks, trade dress, ideas, concepts, plans, business plans, business concepts, techniques, inventions, drawings, artwork, logos, graphics, web pages, databases, software, programs, CGI's, plug ins, applications, brochures, inventions, marketing plans and concepts, and all other ideas and work product of the Employee. The Employee acknowledges and agrees that all creations shall be \"works made for hire\" as defined in the [ACT OR CODE]. Notwithstanding the fact that this material may be considered to be a work made for hire, Employee agrees, during Employee's employment and thereafter, which covenant shall survive any termination of the employment relationship, to execute any and all documents requested by the Corporation to confirm the Corporation's ownership and control of all such material, including but not limited to assignments of copyright, confirmations of work for hire status, waivers of proprietary rights, copyright application, and any other documents requested by Corporation. RESTRICTIVE COVENANTS","Employment Agreement_At Will Employee","7","https://templates.business-in-a-box.com/imgs/1000px/employment-agreement_at-will-employee-D541.png","https://templates.business-in-a-box.com/imgs/250px/541.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#541.xml",{"title":110,"description":6},"employment agreement_at will employee",[112,113,116],{"label":31,"url":96},{"label":114,"url":115},"Hire an Employee","hire-employee",{"label":18,"url":117},"business-legal-agreements","/template/employment-agreement_at-will-employee-D541",{"description":120,"descriptionCustom":6,"label":121,"pages":122,"size":123,"extension":10,"preview":124,"thumb":125,"svgFrame":126,"seoMetadata":127,"parents":128,"keywords":132,"url":133},"INDEPENDENT CONTRACTOR AGREEMENT This Independent Contractor Agreement (\"Agreement\") is made and effective [Date], BETWEEN: [INDEPENDENT CONTRACTOR NAME] (the \"Independent Contractor\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] RECITALS Independent Contractor is engaged in providing [Describe] business services, its Employer Tax I.D. Number is [Insert], and its Business License Number is [insert]. Independent Contractor has complied with all Federal, State, and local laws regarding business permits, sales permits, licenses, reporting requirements, tax withholding requirements, and other legal requirements of any kind that may be required to carry out said business and the Scope of Work which is to be performed as an Independent Contractor pursuant to this Agreement. Independent Contractor is or remains open to conducting similar tasks or activities for clients other than the Company and holds themselves out to the public to be a separate business entity. Company desires to engage and contract for the services of the Independent Contractor to perform certain tasks as set forth below. Independent Contractor desires to enter into this Agreement and perform as an independent contractor for the company and is willing to do so on the terms and conditions set forth below. NOW, THEREFORE, in consideration of the above recitals and the mutual promises and conditions contained in this Agreement, the Parties agree as follows: TERMS This Agreement shall be effective commencing [Date], and shall continue until terminated at the completion of the Scope of Work which shall occur no later than [Date] or by either party as otherwise provided herein. STATUS OF INDEPENDENT CONTRACTOR This Agreement does not constitute a hiring by either party. It is the parties intentions that Independent Contractor shall have an independent contractor status and not be an employee for any purposes, including, but not limited to, [laws]. Independent Contractor shall retain sole and absolute discretion in the manner and means of carrying out their activities and responsibilities under this Agreement. This Agreement shall not be considered or construed to be a partnership or joint venture, and the Company shall not be liable for any obligations incurred by Independent Contractor unless specifically authorized in writing. Independent Contractor shall not act as an agent of the Company, ostensibly or otherwise, nor bind the Company in any manner, unless specifically authorized to do so in writing. TASKS, DUTIES, AND SCOPE OF WORK Independent Contractor agrees to devote as much time, attention, and energy as necessary to complete or achieve the following: [Describe]. The above to be referred to in this Agreement as the \"Scope of Work\". It is expected that the Scope of Work will completed by [Date]. Independent Contractor shall additionally perform any and all tasks and duties associated with the Scope of Work set forth above, including but not limited to, work being performed already or related change orders. Independent Contractor shall not be entitled to engage in any activities which are not expressly set forth by this Agreement. The books and records related to the Scope of Work set forth in this Agreement shall be maintained by the Independent Contractor at the Independent Contractor's principal place of business and open to inspection by Company during regular working hours. Documents to which Company will be entitled to inspect include, but are not limited to, any and all contract documents, change orders/purchase orders and work authorized by Independent Contractor or Company on existing or potential projects related to this Agreement. Independent Contractor shall be responsible to the management and directors of Company, but Independent Contractor will not be required to follow or establish a regular or daily work schedule. Supply all necessary equipment, materials and supplies. Independent Contractor will not rely on the equipment or offices of Company for completion of tasks and duties set forth pursuant to this Agreement. Any advice given Independent Contractors regarding the scope of work shall be considered a suggestion only, not an instruction. Company retains the right to inspect, stop, or alter the work of Independent Contractor to assure its conformity with this Agreement. ASSURANCE OF SERVICES Independent Contractor will assure that the following individuals (the \"Key Employees\") will be available to perform, and will perform, the Services hereunder until they are completed (identify by title and name as applicable): [Name of Key Employee, Title] [Name of Key Employee, Title] The Key Employees may be changed only with the prior written approval of the Company, which approval shall not be unreasonably withheld. COMPENSATION Independent Contractor shall be entitled to compensation for performing those tasks and duties related to the Scope of Work as follows: [Describe] Such compensation shall become due and payable to Independent Contractor in the following time, place, and manner: [Describe] NOTICE CONCERNING WITHHOLDING OF TAXES Independent Contractor recognizes and understands that it will receive a [specify tax] statement and related tax statements, and will be required to file corporate and/or individual tax returns and to pay taxes in accordance with all provisions of applicable Federal and State law. Independent Contractor hereby promises and agrees to indemnify the Company for any damages or expenses, including attorney's fees, and legal expenses, incurred by the Company as a result of independent contractor's failure to make such required payments. AGREEMENT TO WAIVE RIGHTS TO BENEFITS Independent Contractor hereby waives and foregoes the right to receive any benefits given by Company to its regular employees, including, but not limited to, health benefits, vacation and sick leave benefits, profit sharing plans, etc. This waiver is applicable to all non-salary benefits which might otherwise be found to accrue to the Independent Contractor by virtue of their services to Company, and is effective for the entire duration of Independent Contractor's agreement with Company. This waiver is effective independently of Independent Contractor's employment status as adjudged for taxation purposes or for any other purpose. Neither this Agreement, nor any duties or obligations under this Agreement may be assigned by either party without the consent of the other. TERMINATION This Agreement may be terminated prior to the completion or achievement of the Scope of Work by either party giving [number] days written notice. Such termination shall not prejudice any other remedy to which the terminating party may be entitled, either by law, in equity, or under this Agreement. NON-DISCLOSURE OF TRADE SECRETS, CUSTOMER LISTS AND OTHER PROPRIETARY INFORMATION Independent Contractor agrees not to disclose or communicate, in any manner, either during or after Independent Contractor's agreement with Company, information about Company, its operations, clientele, or any other information, that relate to the business of Company including, but not limited to, the names of its customers, its marketing strategies, operations, or any other information of any kind which would be deemed confidential, a trade secret, a customer list, or other form of proprietary information of Company. Independent Contractor acknowledges that the above information is material and confidential and that it affects the profitability of Company. ","Independent Contractor Agreement","6",62,"https://templates.business-in-a-box.com/imgs/1000px/independent-contractor-agreement-D160.png","https://templates.business-in-a-box.com/imgs/250px/160.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#160.xml",{"title":6,"description":6},[129],{"label":130,"url":131},"Consultant & Contractors","consulting-contractor-business","independent contractor agreement","/template/independent-contractor-agreement-D160",{"description":135,"descriptionCustom":6,"label":136,"pages":137,"size":138,"extension":10,"preview":139,"thumb":140,"svgFrame":141,"seoMetadata":142,"parents":143,"keywords":147,"url":148},"EMPLOYMENT AGREEMENT FOR AN EXECUTIVE This Employment Agreement for an Executive (the \"Agreement\") is made and effective this [Date], BETWEEN: [EXECUTIVE NAME] (the \"Executive\"), an individual with his main address at: AND: [COMPANY NAME] (the \"Company\"), an entity organized and existing under the laws of the [STATE/PROVINCE], with its head office located at: Recitals In consideration of the covenants and agreements herein contained and the moneys to be paid hereunder, the Company hereby employs the Executive and the Executive hereby agrees to perform services as an Executive of the Company, upon the following terms and conditions: TERM The Company hereby employs Executive to serve as [position] and to serve in such additional or different position or positions as the Company may determine in its sole discretion. The term of employment shall be for a period of [NUMBER] years (\"Employment Period\") to commence on [DATE], unless earlier terminated as set forth herein. The effective date of this Agreement shall be the date first set forth above, and it shall continue in effect until the earlier of: The effective date of any subsequent employment agreement between the Company and the Executive; The effective date of any termination of employment as provided elsewhere herein; or [NUMBER] year(s) from the effective date hereof, provided, that this Employment Agreement shall automatically renew for successive periods of [NUMBER] years each unless either party gives written notice to other that it does not wish to automatically renew this Agreement, which written notice must be received by the other party no less than [NUMBER] days and no more than [NUMBER] days prior to the expiration of the applicable term. Duties and Responsibilities Executive will be reporting to [IDENTIFY]. Within the limitations established by the By-laws of the Company, the Executive shall have each and all of the duties and responsibilities of that position and such other or different duties on behalf of the Company, as may be assigned from time to time by [identify what person or body may assign additional responsibilities]. Location The initial principal location at which Executive shall perform services for the Company shall be [location]. Acceptance of Employment Executive accepts employment with the Company upon the terms set forth above and agrees to devote all Executive's time, energy and ability to the interests of the Company, and to perform Executive's duties in an efficient, trustworthy and business-like manner. Devotion of Time to Employment The Executive shall devote the Executive's best efforts and substantially all of the Executive's working time to performing the duties on behalf of the Company. The Executive shall provide services during the normal business hours of the Company as determined by the Company. Reasonable amounts of time may be allotted to personal or outside business, charitable and professional activities and shall not constitute a violation of this Agreement provided such activities do not materially interfere with the services required to be rendered hereunder. QUALIFICATIONS The Executive shall, as a condition of this Agreement, satisfy all of the qualification that are reasonably and in good faith established by the Board of Directors. Compensation Base Salary Executive shall be paid a base salary (\"Base Salary\") at the annual rate of [salary], payable in bi-weekly installments consistent with Company's payroll practices. The annual Base Salary shall be reviewed on or before [DATE] of each year, unless Executive's employment hereunder shall have been terminated earlier pursuant to this Agreement, starting on [agreed upon date] by the Board of Directors of the Company to determine if such Base Salary should be increased for the following year in recognition of services to the Company. In consideration of the services under this Agreement, Executive shall be paid the aggregate of basic compensation, bonus and benefits as hereinafter set forth. Payment Payment of all compensation to Executive hereunder shall be made in accordance with the relevant Company policies in effect from time to time, including normal payroll practices. Bonus From time to time, the Company may pay to Executive a bonus out of net revenues of the Company. Payment of any bonus compensation shall be at the sole discretion of the Board of Directors or the Executive committee of the Board of Directors and the Executive shall have no entitlement to such amount absent a decision by the Company as aforesaid to make such bonus compensation. Executive shall also be entitled to a bonus determined as follows: [DESCRIBE] Benefits The Company shall provide Executive with such benefits as are provided to other senior management Of the Company. Benefits shall include at a minimum (i) paid vacation of [NUMBER] days per year, at such times as approved by the Board of Directors, (ii) health insurance coverage under the same terms as offered to other Executives of the Company, (iii) retirement and profit sharing programs as offered to other Executives of the Company, (iv) paid holidays as per the Company's policies, and (v) such other benefits and perquisites as are approved by the Board of Directors. The Company has the right to modify conditions of participation, terminate any benefit, or change insurance plans and other providers of such benefits in its sole discretion. The Executive shall be reimbursed for out of pocket expenses that are pre-approved by the Company, subject to the Company's policies and procedures therefore, and only for such items that are a necessary and integral part of the Executive's job functions. NonDeductible Compensation In the event a deduction shall be disallowed by the Internal Revenue Service or a court of competent jurisdiction for federal income tax purposes for all or any part of the payment made to Executive by the Company or any other shareholder or Executive of the Company, shall be required by the Internal Revenue Service to pay a deficiency on account of such disallowance, then Executive shall repay to the Company or such other individual required to make such payment, an amount equal to the tax imposed on the disallowed portion of such payment, plus any and all interest and penalties paid with respect thereto. The Company or other party required to make payment shall not be required to defend any proposed disallowance or other action by the Internal Revenue Service or any other state, federal, or local taxing authorities. Withholding All sums payable to Executive under this Agreement will be reduced by all federal, state, local, and other withholdings and similar taxes and payments required by applicable law. Other Employment Benefits Business Expenses Upon submission of itemized expense statements in the manner specified by the Company, Executive shall be entitled to reimbursement for reasonable travel and other reasonable business expenses duly incurred by Executive in the performance of his duties under this Agreement. Benefit Plans Executive shall be entitled to participate in the Company's medical and dental plans, life and disability insurance plans and retirement plans pursuant to their terms and conditions. Executive shall be entitled to participate in any other benefit plan offered by the Company to its Executives during the term of this Agreement (other than stock option or stock incentive plans, which are governed by Section 3(d) below). Nothing in this Agreement shall preclude the Company or any affiliate of the Company from terminating or amending any Executive benefit plan or program from time to time. Vacation Executive shall be entitled to [agreed upon number of time] weeks of vacation each year of full employment, exclusive of legal holidays, as long as the scheduling of Executive's vacation does not interfere with the Company's normal business operations.","Employment Agreement Executive","12",97,"https://templates.business-in-a-box.com/imgs/1000px/employment-agreement_executive-D543.png","https://templates.business-in-a-box.com/imgs/250px/543.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#543.xml",{"title":6,"description":6},[144,145,146],{"label":31,"url":96},{"label":114,"url":115},{"label":18,"url":117},"employment agreement executive","/template/employment-agreement-executive-D543",{"description":150,"descriptionCustom":6,"label":151,"pages":152,"size":9,"extension":10,"preview":153,"thumb":154,"svgFrame":155,"seoMetadata":156,"parents":158,"keywords":157,"url":163},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","3","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":157,"description":6},"non disclosure agreement nda",[159,160],{"label":18,"url":117},{"label":161,"url":162},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":165,"descriptionCustom":6,"label":166,"pages":167,"size":9,"extension":168,"preview":169,"thumb":170,"svgFrame":171,"seoMetadata":172,"parents":174,"keywords":173,"url":181},"Indicates the future financial performance of a business for a period of twelve months.","Financial Projections_12 Months","1","xls","https://templates.business-in-a-box.com/imgs/1000px/financial-projections_12-months-D360.png","https://templates.business-in-a-box.com/imgs/250px/360.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#360.xml",{"title":173,"description":6},"financial projections_12 months",[175,178],{"label":176,"url":177},"Finance & Accounting","finance-accounting",{"label":179,"url":180},"Financial Statements","financial-statements","/template/financial-projections_12-months-D360",false,{"seo":184,"reviewer":195,"legal_disclaimer":182,"quick_facts":199,"at_a_glance":201,"personas":205,"variants":230,"glossary":257,"sections":291,"how_to_fill":342,"common_mistakes":383,"faqs":400,"industries":428,"comparisons":445,"diy_vs_pro":458,"educational_modules":471,"related_template_ids_curated":474,"schema":487,"classification":489},{"meta_title":185,"meta_description":186,"primary_keyword":187,"secondary_keywords":188},"Stock Option Plan Template (Free Word)","Free stock option plan template for startups and growing companies. Covers grant terms, vesting schedules, exercise procedures, and tax treatment. Free Word and PDF download.","stock option plan template",[189,190,191,192,193,194],"employee stock option plan template","stock option plan template word","startup equity plan template","stock option plan free download","esop plan template","equity compensation plan template",{"name":196,"credential":197,"reviewed_date":198},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":200,"legal_review_recommended":182,"signature_required":182},"advanced",{"what_it_is":202,"when_you_need_it":203,"whats_inside":204},"A Stock Option Plan is a formal company policy document that establishes the rules governing how stock options are granted to, vest with, and exercised by employees, directors, and consultants. This free Word download gives you a structured, board-ready starting point you can edit online and export as PDF to present for board approval and distribute to plan participants.\n","Use it when you are ready to offer equity compensation to employees or key advisors — typically before or alongside your first formal employee hires, a seed or Series A financing round, or any situation where cash compensation alone cannot attract or retain the talent you need.\n","Plan purpose and share reserve, eligibility criteria, grant and exercise procedures, vesting schedules and acceleration provisions, option types (ISO vs. NSO), exercise price methodology, termination and expiration rules, and plan administration responsibilities.\n",[206,210,214,218,222,226],{"title":207,"use_case":208,"icon_asset_id":209},"Startup founders","Establishing a formal equity pool before the first employee hire","persona-startup-founder",{"title":211,"use_case":212,"icon_asset_id":213},"HR managers","Standardizing equity grants and vesting terms across all departments","persona-hr-manager",{"title":215,"use_case":216,"icon_asset_id":217},"CFOs and finance directors","Documenting the option pool and expense treatment for financial reporting","persona-cfo",{"title":219,"use_case":220,"icon_asset_id":221},"CEOs of growth-stage companies","Retaining key employees through equity incentives ahead of a funding round","persona-ceo",{"title":223,"use_case":224,"icon_asset_id":225},"Corporate counsel and legal teams","Creating the governing document that individual option agreements reference","persona-legal-counsel",{"title":227,"use_case":228,"icon_asset_id":229},"Board members and compensation committee chairs","Approving and overseeing an equity incentive program with clear governance rules","persona-board-member",[231,235,238,242,246,249,253],{"situation":232,"recommended_template":233,"slug":234},"Granting incentive stock options to US-based employees with tax benefits","Incentive Stock Option Agreement (ISO)","employee-stock-option-agreement-D12613",{"situation":236,"recommended_template":237,"slug":234},"Granting options to non-employee advisors, consultants, or foreign workers","Non-Qualified Stock Option Agreement (NSO)",{"situation":239,"recommended_template":240,"slug":241},"Offering employees the right to purchase shares at a discount via payroll","Employee Stock Purchase Plan (ESPP)","employee-share-purchase-plan-D477",{"situation":243,"recommended_template":244,"slug":245},"Awarding restricted shares that vest over time without an exercise price","Restricted Stock Award Agreement","restricted-stock-purchase-agreement-D12855",{"situation":247,"recommended_template":46,"slug":248},"Providing cash-settled phantom equity to employees in a non-public company","phantom-stock-plan-D13748",{"situation":250,"recommended_template":251,"slug":252},"Documenting a specific option grant to an individual under an existing plan","Stock Option Grant Notice and Agreement","notice-of-grant-of-stock-option-D896",{"situation":254,"recommended_template":255,"slug":256},"Establishing equity incentives for a UK or Canadian subsidiary","Share Option Plan (International)","stock-option-plan-D13284",[258,261,264,267,270,273,276,279,282,285,288],{"term":259,"definition":260},"Option Pool","The total number of shares reserved by a company for issuance under its equity incentive plan, expressed as a percentage of fully diluted shares outstanding.",{"term":262,"definition":263},"Incentive Stock Option (ISO)","A type of employee stock option that qualifies for favorable US tax treatment — no ordinary income tax at exercise — if specific IRS holding and eligibility requirements are met.",{"term":265,"definition":266},"Non-Qualified Stock Option (NSO)","A stock option that does not qualify for ISO tax treatment; the spread at exercise is taxed as ordinary income for the recipient and is deductible by the company.",{"term":268,"definition":269},"Vesting Schedule","The timeline and conditions under which an employee earns the right to exercise granted options, commonly structured as a 4-year schedule with a 1-year cliff.",{"term":271,"definition":272},"Cliff Vesting","A vesting structure in which none of the options vest until the employee completes a defined initial period — typically 12 months — at which point a portion (often 25%) vests at once.",{"term":274,"definition":275},"Exercise Price (Strike Price)","The price per share at which a plan participant may purchase stock when exercising an option, set at no less than fair market value on the grant date for ISOs.",{"term":277,"definition":278},"Fair Market Value (FMV)","The price at which a share of company stock would change hands between a willing buyer and seller, determined by a 409A valuation for private companies.",{"term":280,"definition":281},"409A Valuation","An independent appraisal of a private company's common stock fair market value required by US tax law to set defensible ISO exercise prices.",{"term":283,"definition":284},"Acceleration","A plan provision that causes unvested options to vest early, triggered by events such as a change of control, termination without cause, or double-trigger conditions.",{"term":286,"definition":287},"Post-Termination Exercise Period","The window after an employee leaves the company during which they may still exercise vested options, commonly 90 days for voluntary resignation and longer for death or disability.",{"term":289,"definition":290},"Dilution","The reduction in existing shareholders' ownership percentage that occurs when new shares are issued — including shares issued on option exercise.",[292,297,302,307,312,317,322,327,332,337],{"name":293,"plain_english":294,"sample_language":295,"common_mistake":296},"Plan purpose and share reserve","States the objectives of the plan — typically attracting, retaining, and incentivizing employees — and sets the total number of shares available for grant.","The purpose of the [COMPANY NAME] [YEAR] Equity Incentive Plan is to advance the interests of the Company by providing eligible participants with an opportunity to acquire a proprietary interest in the Company. The total number of shares of Common Stock reserved for issuance under this Plan is [NUMBER] shares, representing approximately [X]% of the Company's fully diluted capitalization.","Setting the option pool too small at founding. A pool below 10% of fully diluted shares exhausts quickly after the first two or three hires, forcing a dilutive pool increase at the worst possible time — right before a financing round.",{"name":298,"plain_english":299,"sample_language":300,"common_mistake":301},"Eligibility","Defines who may receive grants under the plan — employees, directors, consultants — and distinguishes which option types each class may receive.","Incentive Stock Options may be granted only to Employees of the Company or any Parent or Subsidiary. Non-Qualified Stock Options may be granted to Employees, Non-Employee Directors, and Consultants. No Participant may receive grants covering more than [NUMBER] shares in any single calendar year.","Omitting a per-person annual grant limit. Without one, the plan may fail to qualify under Section 162(m) or create unexpected tax exposure for high-value grants.",{"name":303,"plain_english":304,"sample_language":305,"common_mistake":306},"Grant procedure and option agreement","Describes how the board or compensation committee approves individual grants, sets the grant date, and requires execution of a written option agreement before any grant is effective.","Each Option shall be evidenced by a written Option Agreement in the form approved by the Administrator, specifying the Grant Date, Exercise Price, number of shares, Option Type, and Vesting Schedule. No Option is effective until the Option Agreement is executed by both the Company and the Participant.","Treating board approval minutes as a substitute for a signed option agreement. Participants who never sign a formal agreement can dispute the grant terms — including the exercise price — at exercise time.",{"name":308,"plain_english":309,"sample_language":310,"common_mistake":311},"Vesting schedule and cliff provisions","Establishes the standard vesting timeline and cliff period, and confirms that unvested options are forfeited on termination of service.","Unless otherwise specified in the applicable Option Agreement, Options shall vest over [48] months of continuous service, with [25]% of the total grant vesting on the first anniversary of the Vesting Commencement Date and 1/48th of the total grant vesting on each monthly anniversary thereafter.","Forgetting to define the vesting commencement date separately from the grant date. For early employees, these can differ by months — using the wrong date over-vests or under-vests participants.",{"name":313,"plain_english":314,"sample_language":315,"common_mistake":316},"Exercise price and 409A compliance","Requires that the exercise price for ISOs be set at no less than 100% of FMV on the grant date (110% for 10%+ shareholders), and references the 409A valuation process.","The Exercise Price of each Option shall not be less than 100% of the Fair Market Value of a Share on the Grant Date, as determined by the Administrator in good faith and in compliance with Section 409A of the Internal Revenue Code. For any Participant who owns more than 10% of the total combined voting power of the Company, the Exercise Price shall not be less than 110% of Fair Market Value.","Granting options at a stale 409A valuation. A new 409A is required whenever a material event — a funding round, acquisition discussion, or significant revenue milestone — affects company value. Granting below FMV triggers immediate ordinary income tax and a 20% penalty on the participant.",{"name":318,"plain_english":319,"sample_language":320,"common_mistake":321},"Option types: ISO vs. NSO","Explains the two option types available under the plan and the conditions under which each applies, including the $100,000 ISO limit rule.","Options granted under this Plan shall be designated as either Incentive Stock Options or Non-Qualified Stock Options in the applicable Option Agreement. To the extent that the aggregate Fair Market Value of shares subject to ISOs exercisable for the first time in any calendar year exceeds $100,000, such excess Options shall be treated as Non-Qualified Stock Options.","Granting ISOs to non-employees. Consultants, advisors, and board members who are not on payroll cannot receive ISOs — doing so retroactively converts them to NSOs and eliminates the intended tax benefit.",{"name":323,"plain_english":324,"sample_language":325,"common_mistake":326},"Exercise procedure and payment methods","Defines how a participant submits an exercise notice, acceptable payment forms (cash, cashless exercise, net exercise), and the company's obligations upon exercise.","To exercise an Option, a Participant must deliver a written Exercise Notice to the Company specifying the number of shares to be purchased, together with payment of the aggregate Exercise Price. Acceptable payment methods include: (a) cash or check; (b) a broker-assisted cashless exercise; or (c) net exercise, subject to Administrator approval.","Allowing only cash payment without a cashless or net exercise mechanism. Employees who cannot fund the exercise price in cash — particularly common in early-stage companies — will let options expire unexercised, defeating the retention purpose of the plan.",{"name":328,"plain_english":329,"sample_language":330,"common_mistake":331},"Termination, expiration, and forfeiture","Sets the post-termination exercise window for each termination scenario — voluntary resignation, involuntary termination, cause, death, and disability — and the maximum option term.","In the event of termination of a Participant's Continuous Service other than for Cause, the Participant may exercise vested Options within [90] days of the termination date. Options expire upon termination for Cause. All Options expire no later than [10] years from the Grant Date (5 years for 10%+ shareholders receiving ISOs).","Using a 90-day post-termination window without considering the tax and liquidity context. For private-company employees who cannot sell shares, 90 days to fund an exercise creates a hardship — many companies extend this to 1–5 years to avoid forfeiture of legitimately earned equity.",{"name":333,"plain_english":334,"sample_language":335,"common_mistake":336},"Change of control and acceleration","Defines what constitutes a change of control and whether unvested options accelerate automatically (single-trigger) or only if the participant is also terminated (double-trigger).","In the event of a Change of Control, the Administrator may, in its discretion: (a) assume or substitute all outstanding Options; (b) accelerate vesting of all or a portion of unvested Options; or (c) cancel Options in exchange for a cash payment equal to the spread. Double-trigger acceleration applies to [X]% of unvested Options for participants with [X] or more years of service.","Choosing single-trigger acceleration for all participants. Acquirers routinely require that key employees remain through integration — single-trigger acceleration eliminates retention leverage and can reduce the acquisition price.",{"name":338,"plain_english":339,"sample_language":340,"common_mistake":341},"Plan administration and amendment","Identifies the plan administrator (typically the board or compensation committee), grants authority to interpret the plan and make grants, and states the process and limits for amending the plan.","This Plan shall be administered by the Board of Directors or a Compensation Committee thereof (the 'Administrator'). The Administrator has full authority to interpret the Plan, establish rules, and make all determinations necessary for Plan administration. Material amendments — including increases to the share reserve or changes to exercise price terms — require stockholder approval.","Granting the administrator unlimited amendment power without requiring stockholder approval for material changes. Investors and future acquirers scrutinize plan governance closely; unchecked amendment authority is a diligence red flag.",[343,348,353,358,363,368,373,378],{"step":344,"title":345,"description":346,"tip":347},1,"Set the option pool size","Determine the total share reserve as a percentage of fully diluted capitalization. Most early-stage companies set a pool of 10–20% of fully diluted shares. Enter the exact number of reserved shares and the percentage in the plan purpose section.","Size the pool to cover 18–24 months of projected hiring. Investors will model dilution from the pool before setting your pre-money valuation — a pool increase at closing reduces founder ownership, not investor ownership.",{"step":349,"title":350,"description":351,"tip":352},2,"Define eligibility and option types","Specify which participant classes — employees, directors, consultants — are eligible and which option type each may receive. Confirm that ISOs are limited to employees on payroll only.","If you have non-US employees, designate their grants as NSOs from the outset. ISO rules are exclusively US federal tax provisions and have no benefit for non-US participants.",{"step":354,"title":355,"description":356,"tip":357},3,"Set the standard vesting schedule","Enter the default vesting period (typically 48 months), cliff (12 months), and vesting frequency (monthly after cliff). Note that individual option agreements can deviate from this default.","Monthly vesting after the cliff is the market standard for US tech companies. Quarterly vesting is common in other industries — check peer benchmarks before deviating.",{"step":359,"title":360,"description":361,"tip":362},4,"Establish the exercise price methodology","Confirm that exercise prices will be set at FMV on the grant date per a current 409A valuation. Reference your most recent 409A report and note its effective date and expiration.","A 409A valuation is typically valid for 12 months or until a material event. Build a calendar reminder to refresh it before the expiration date to avoid a lapse in defensibility.",{"step":364,"title":365,"description":366,"tip":367},5,"Define post-termination exercise periods","Set the exercise window for each termination scenario: voluntary resignation (typically 90 days), involuntary without cause (90 days to 1 year), death (12–18 months), disability (12 months), and cause (immediate forfeiture).","Consider extending the post-termination window to 1–5 years for private companies. Early employees cannot sell shares to fund an exercise — a 90-day window is effectively a forfeiture clause for many of them.",{"step":369,"title":370,"description":371,"tip":372},6,"Configure change-of-control and acceleration terms","Decide between single-trigger and double-trigger acceleration for each participant class. Enter the relevant definitions of 'Change of Control' and the mechanics of option treatment in an acquisition.","Double-trigger acceleration (change of control plus termination within 12 months) is the preferred structure for most participants — it aligns incentives with integration while still protecting employees against involuntary termination post-acquisition.",{"step":374,"title":375,"description":376,"tip":377},7,"Complete the administration and amendment section","Identify the plan administrator by title (board of directors or compensation committee), enumerate their authorities, and specify which amendments require stockholder approval.","Explicitly listing stockholder-approval triggers — pool increases, repricing, extension of option terms — signals governance maturity to institutional investors during due diligence.",{"step":379,"title":380,"description":381,"tip":382},8,"Have the board approve and adopt the plan","Present the completed plan to the board for formal adoption by written consent or at a board meeting. Record the adoption date and attach the board resolution to the plan as an exhibit.","The board adoption date is the plan's effective date — individual grant dates cannot precede it. Confirm the adoption date before issuing any grant notices.",[384,388,392,396],{"mistake":385,"why_it_matters":386,"fix":387},"Granting options before board adoption","Options granted before the plan is formally adopted have no governing document — they are unenforceable as drafted and create tax compliance exposure for both the company and the recipient.","Obtain a signed board resolution adopting the plan before issuing any grant notices. Use the board adoption date as the earliest permissible grant date.",{"mistake":389,"why_it_matters":390,"fix":391},"Using a stale 409A valuation to set exercise prices","Granting options below fair market value triggers Section 409A penalties: the recipient owes ordinary income tax on the spread immediately — not at exercise — plus a 20% penalty tax.","Obtain a new 409A valuation before each grant cycle, or confirm your existing valuation is current (no material event has occurred and it is less than 12 months old).",{"mistake":393,"why_it_matters":394,"fix":395},"Designating ISOs for non-employee advisors or consultants","ISO status requires the recipient to be a bona fide employee at grant. Grants to non-employees automatically become NSOs regardless of the label — creating a mismatch between the grant notice and actual tax treatment.","Audit your participant list before each grant cycle. Advisors, board members who are not also employees, and independent contractors must receive NSOs only.",{"mistake":397,"why_it_matters":398,"fix":399},"No cashless or net exercise mechanism","Without an alternative to cash payment, employees who cannot fund the exercise price — particularly at private companies with no share liquidity — will let vested options expire unexercised.","Add both broker-assisted cashless exercise and net exercise (same-day sale of a portion of shares to cover the exercise price) as permitted payment methods in the plan and option agreement.",[401,404,407,410,413,416,419,422,425],{"question":402,"answer":403},"What is a stock option plan?","A stock option plan is a formal company policy document that establishes the rules governing how options to purchase company stock are granted, vest, and are exercised by employees, directors, and consultants. It creates the legal framework that all individual option agreements reference and is adopted by the board of directors before any grants are made.\n",{"question":405,"answer":406},"What is the difference between an ISO and an NSO?","An Incentive Stock Option (ISO) is available only to employees and qualifies for favorable US tax treatment — no ordinary income tax is owed at exercise if holding period requirements are met. A Non-Qualified Stock Option (NSO) can be granted to employees, directors, and consultants, but the spread between exercise price and fair market value at exercise is taxed as ordinary income. Companies generally grant ISOs to employees and NSOs to everyone else.\n",{"question":408,"answer":409},"What is a 4-year vesting schedule with a 1-year cliff?","It is the most common vesting structure for US tech companies. No options vest during the first 12 months of service (the cliff). On the first anniversary, 25% of the total grant vests at once. The remaining 75% vests monthly over the following 36 months — approximately 2.08% per month. An employee who leaves before the 12-month cliff forfeits all unvested options.\n",{"question":411,"answer":412},"How large should the option pool be?","Most early-stage companies reserve 10–20% of fully diluted shares for their equity incentive plan. The right size depends on your hiring plan for the next 18–24 months. Investors will typically require a specific pool size before a financing round closes and will calculate dilution from it before setting your pre-money valuation — so a larger pool dilutes founders more than investors at closing.\n",{"question":414,"answer":415},"What is a 409A valuation and why does it matter for a stock option plan?","A 409A valuation is an independent appraisal of a private company's common stock fair market value, required by US tax law to set defensible ISO exercise prices. Options granted at or above the 409A FMV are safe from Section 409A tax penalties. Options granted below FMV trigger immediate ordinary income tax plus a 20% penalty on the recipient, regardless of whether they have exercised or sold any shares.\n",{"question":417,"answer":418},"What happens to unvested options when an employee leaves?","Unvested options are forfeited immediately upon termination of continuous service, unless the plan or individual option agreement contains an acceleration provision. Vested options may be exercised within the post-termination exercise window — typically 90 days for voluntary resignation — after which they expire. Options terminate immediately if the employee is dismissed for cause.\n",{"question":420,"answer":421},"What is double-trigger acceleration?","Double-trigger acceleration requires two events to occur before unvested options accelerate: (1) a change of control of the company, and (2) the participant's involuntary termination or constructive dismissal within a defined period after the acquisition (typically 12 months). This is preferred over single-trigger acceleration because it preserves the acquirer's ability to retain key employees through integration.\n",{"question":423,"answer":424},"Does a stock option plan need to be approved by shareholders?","Board approval is sufficient to adopt the plan and begin making grants in most cases. However, stockholder approval is typically required before the plan can qualify for ISO treatment under the IRS rules and before options can qualify as performance-based compensation under Section 162(m). Material amendments — such as increasing the share reserve or reducing exercise prices — also generally require stockholder approval.\n",{"question":426,"answer":427},"Can a stock option plan be used by a non-US company?","Yes, but ISO treatment is a US federal tax provision with no equivalent in other countries. Non-US companies and subsidiaries should grant NSOs or jurisdiction-specific equity instruments — such as EMI options in the UK or stock option plans under Canadian securities rules — and should consult local tax and securities counsel before granting equity to non-US participants.\n",[429,433,437,441],{"industry":430,"icon_asset_id":431,"specifics":432},"SaaS / Technology","industry-saas","Equity compensation is often the primary retention tool for engineers and product managers; ISO grants, 4-year vesting, and double-trigger acceleration are market standard.",{"industry":434,"icon_asset_id":435,"specifics":436},"Biotech and Life Sciences","industry-healthtech","Long development timelines require extended vesting periods (4–6 years) and milestone-based acceleration tied to clinical or regulatory events.",{"industry":438,"icon_asset_id":439,"specifics":440},"Financial Services / Fintech","industry-fintech","Regulatory constraints on equity compensation require coordination with compliance teams; deferred vesting and clawback provisions are common for regulated roles.",{"industry":442,"icon_asset_id":443,"specifics":444},"Professional Services","industry-professional-services","Options are used selectively for equity-partner track employees; smaller pools (5–10%) and longer vesting periods (5 years) are typical compared to technology companies.",[446,449,452,455],{"vs":251,"vs_template_id":447,"summary":448},"D{STOCK_OPTION_GRANT_NOTICE_ID}","A stock option plan is the master governing document that applies to all participants and all grants. A stock option grant notice and agreement is the individual document issued to a specific participant that references the plan and specifies their personal grant terms — number of shares, exercise price, and vesting commencement date. You need both: the plan first, then individual agreements for each grant.",{"vs":244,"vs_template_id":450,"summary":451},"D{RESTRICTED_STOCK_AWARD_ID}","A restricted stock award grants actual shares that vest over time, with no exercise price — the employee owns the stock from day one, subject to a repurchase right that lapses as they vest. A stock option grants the right to purchase shares in the future at a fixed price. Restricted stock is taxed differently and is typically used for founders or very early employees, while options are the standard for later hires.",{"vs":46,"vs_template_id":453,"summary":454},"D{PHANTOM_STOCK_PLAN_ID}","A phantom stock plan delivers a cash payment equal to the appreciation in share value without actually issuing shares. It achieves a similar retention effect as stock options but avoids dilution and cap table complexity. Phantom plans are common in private companies that are not planning a liquidity event or do not want to share ownership. Stock option plans create real equity ownership; phantom plans create a contractual cash obligation.",{"vs":240,"vs_template_id":456,"summary":457},"D{ESPP_ID}","An ESPP allows employees to purchase shares at a discount — typically 5–15% below market — through payroll deductions over defined offering periods. It is a broad-based program designed to encourage general employee share ownership. A stock option plan is a selective, grant-based program targeting key contributors with a higher potential upside. Most public companies run both; private companies typically run only a stock option plan until a liquidity event.",{"use_template":459,"template_plus_review":463,"custom_drafted":467},{"best_for":460,"cost":461,"time":462},"Early-stage startups establishing a basic equity incentive framework before the first formal hires or a pre-seed round","Free","2–4 hours to complete and present for board approval",{"best_for":464,"cost":465,"time":466},"Companies raising a seed or Series A round, or those making grants to employees in multiple US states or internationally","$500–$2,000 for a startup attorney review","3–5 business days",{"best_for":468,"cost":469,"time":470},"Companies preparing for a Series B or later, anticipating an IPO, or requiring complex acceleration, clawback, or international sub-plan provisions","$3,000–$10,000+","2–4 weeks",[472,473],"iso-vs-nso-explained","409a-valuation-basics",[475,476,477,478,479,480,481,482,483,484,485,486],"employee-handbook-D712","employment-agreement_at-will-employee-D541","independent-contractor-agreement-D160","employment-agreement-executive-D543","non-disclosure-agreement-nda-D12692","financial-projections_12-months-D360","adhesion-to-the-unanimous-shareholder-agreement-D848","board-resolution-D78","cap-table-D13151","job-offer-letter-long-D12769","strategic-planning-template-D13857","business-plan-canvas-(one-page)-D12527",{"emit_how_to":488,"emit_defined_term":488},true,{"primary_folder":96,"secondary_folder":490,"document_type":491,"industry":492,"business_stage":493,"tags":494,"confidence":500},"compensation-and-payroll","policy","general","growth",[495,496,497,498,499],"equity","stock-options","compensation","employee-benefits","board-governance",0.85,"\u003Ch2>What is a Stock Option Plan?\u003C/h2>\n\u003Cp>A \u003Cstrong>Stock Option Plan\u003C/strong> is a formal policy document adopted by a company's board of directors that establishes the complete framework for granting, vesting, and exercising options to purchase company stock. It defines the total share reserve, eligibility rules, option types available (ISO or NSO), standard vesting schedules, exercise price requirements, and procedures for what happens to options when a participant leaves the company or a change of control occurs. Every individual option agreement issued to an employee or advisor derives its authority from — and is governed by — this master plan document.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a formal stock option plan in place, no option grant has a legal foundation. Companies that issue option agreements referencing a non-existent or unadopted plan expose every participant to tax risk and create cap table disputes that surface — at the worst possible time — during a financing round or acquisition due diligence. Investors and acquirers scrutinize equity plans closely: a missing or poorly drafted plan can delay a close, reduce your valuation, or require expensive legal remediation. A properly structured stock option plan, adopted by the board before the first grant is issued, ensures that every option you grant is defensible, tax-compliant, and enforceable from day one. This template gives you a board-ready starting point built around market-standard terms — 4-year vesting, 409A-compliant pricing, and double-trigger acceleration — so you can focus on hiring the people who will actually build the company.\u003C/p>\n",1781185969544]